AS3 MovieClip Displacement Issue

Please see my .fla attachment.

When positioning a MC and adding to the stage, the buttons contained within the MC are displaced by the position of the parent MC. Huh? :h:

I placed comments in the simple .fla to show you what I mean. It only works if you don’t move the parent MC (keep it at (0,0)). Thanks for any pointers you can provide.